Correlation Between PennantPark Investment and FitLife Brands,
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and FitLife Brands, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PennantPark Investment and FitLife Brands, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and FitLife Brands, Common, you can compare the effects of market volatilities on PennantPark Investment and FitLife Brands, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PennantPark Investment with a short position of FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and FitLife Brands,.
Diversification Opportunities for PennantPark Investment and FitLife Brands,
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and FitLife is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common and PennantPark Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PennantPark Investment are associated (or correlated) with FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and FitLife Brands, go up and down completely randomly.
Pair Corralation between PennantPark Investment and FitLife Brands,
Given the investment horizon of 90 days PennantPark Investment is expected to generate 0.49 times more return on investment than FitLife Brands,. However, PennantPark Investment is 2.02 times less risky than FitLife Brands,. It trades about 0.03 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about -0.03 per unit of risk. If you would invest 669.00 in PennantPark Investment on September 6, 2024 and sell it today you would earn a total of 9.00 from holding PennantPark Investment or generate 1.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PennantPark Investment vs. FitLife Brands, Common
Performance |
Timeline |
PennantPark Investment |
FitLife Brands, Common |
PennantPark Investment and FitLife Brands, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PennantPark Investment and FitLife Brands,
The main advantage of trading using opposite PennantPark Investment and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, FitLife Brands, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FitLife Brands, will offset losses from the drop in FitLife Brands,'s long position.PennantPark Investment vs. Sixth Street Specialty | PennantPark Investment vs. New Mountain Finance | PennantPark Investment vs. Carlyle Secured Lending | PennantPark Investment vs. BlackRock TCP Capital |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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